Stock markets will punish investors who inadvertently bought any stock without checking the company’s problems ahead. They will have losses today from companies like SolarEdge (SEDG) and Walgreens (WBA).
SolarEdge reported revenue crashing down by 64.5% to $316.04 million. Non-GAAP gross margin is just 3.3%. The firm ended Q4 with cash and equivalent holdings of $634.7 million. In Q1, SolarEdge expects non-GAAP gross margin in the negative 3% to positive 1% range. Unfortunately, this includes an ~ 850 basis point in net IRA manufacturing tax credits.
SEDG stock lost 11.6% in after-hours trade. It may have company-specific and product issues. Renewable energy investors may consider First Solar (FSLR) instead.
Last night, S&P Dow Jones announced that Amazon (AMZN) would replace Walgreens Boots (WBA). WBA stock has been a stock to avoid for over a year. Despite replacing its Chief Executive Officer, the new leadership will need at least a few quarters to fix the broken drugstore business.
In retail, Walmart (WMT) will split its shares 3-for-1. This lowers its weight on the DJIA index.
Watch Uber stock today. The index replaces JetBlue (JBLU) with Uber shares on the Dow Jones Transportation Average (‘DJTA’).
Elsewhere in the auto parts market, beware of BorgWarner (BWA), whose stock is at a 52-week low. The weak electric vehicle market hurt BWA’s Q4 results and full-year 2024 guidance. Magna (MGA), Aptiv (APTV), and Autoliv (ALV) are better alternatives.
